Homebuilder confidence took a hit in February, dropping to its lowest point since September 2024. The National Association of Home Builders (NAHB) reported a significant decline in its monthly sentiment index, which fell 5 points to 42. A reading below 50 on the NAHB index signals that builders generally view market conditions as unfavorable.
The slump reflects mounting pressures facing the housing industry: elevated mortgage rates continue to sideline potential buyers, while construction costs remain high due to ongoing tariffs and supply chain issues.
Yahoo Finance Senior Housing Reporter Dani Romero analyzes this downturn in builder confidence, exploring how proposed policies from the Trump administration could further drive up construction costs.
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This post was written by Angel Smith
